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18 August 2017
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INTERSERVE’S HALF YEAR ADJUSTED PROFIT FALLS

Interserve profits
Interserve experienced an overall reduction in profits

10 August 2017 | Herpreet Kaur Grewal


Interserve’s support services division gave a “resilient performance” despite the impact of higher operating costs driven by increased regulation, according to the company’s half year results. 

 

Its overall operating profit of £46.1 million dropped compared to the same period in the previous year - from £64.3 million.  


The company’s construction division did not fare as well with results impacted by “underperformance on a small number of contracts and the continuation of tough market conditions”.


Interserve also reported that its June 2017 net debt was in line with expectations at £387.5 million and full-year average net debt was expected to be in the range £475-£500 million.


However, the company predicted a “strong future workload of £7.1 billion with more than 95 per cent visibility of 2017 consensus revenues, with contract wins in support services and a narrower market focus in UK construction”. 


Adrian Ringrose, Interserve's chief executive, said:  “Trading in the first half of the year was mixed. In the UK, support services delivered robust volume but margins were impacted by a number of anticipated cost headwinds, while in construction the continuation of a long period of challenging market conditions, coupled with areas of underperformance in operational delivery, resulted in a small loss for the division. We expect the restructuring and cost reduction measures we have taken in recent months to benefit both divisions’ performance during the second half of the year.”